Need cash? Don't sell your funds.
Pledge your mutual fund units and borrow against them. Your investments stay invested — they keep compounding, you keep your long-term plan, and you skip the exit load and capital-gains tax that come with redeeming.
Four steps, entirely online
1. Pick your funds
Choose which eligible holdings to pledge. You stay the owner of every unit.
2. Pledge digitally
The registrar (CAMS/KFintech) marks a lien on those units after your OTP approval.
3. Get your limit
An overdraft limit opens in your bank account, based on the value and category of what you pledged.
4. Use and repay
Withdraw what you need, pay interest only on that amount, repay any time. Lien is released on closure.
Selling costs more than it looks
Redeeming to cover a short-term need has three hidden prices: you crystallise capital-gains tax, you may pay exit load, and — the expensive one — you break compounding on a corpus that took years to build. A loan against your units leaves all three intact.
It suits short, definite needs: a medical bill, a business gap, a fee deadline, a deposit. It is not meant for funding a fresh investment on borrowed money.
Read the termsWorth knowing before you pledge
- Interest accrues on the amount you actually draw, not the whole limit.
- If markets fall and your loan-to-value breaches the limit, you'll need to pledge more units or repay part of the loan.
- Pledged units can't be redeemed or switched until the lien is lifted.
- ELSS units still in their three-year lock-in cannot be pledged.
- Eligible schemes, LTV bands and rates are set by the lending partner and can change.
See what your portfolio can unlock
Check your eligible limit in the FundOra dashboard, or work out the EMI first.